Madison County has approved the Sunnybrook automotive TIF (tax increment financing), which will allow a Jaguar, Audi and Land Rover car dealerships to come to Ridgeland.
Chris Gouras of Gouras and Associates presented the $2.3 million TIF proposal to the board for a public hearing on behalf of Richie Automotive Services and managing partner Joe Usry.
Following a public hearing held on December 4 during a board of supervisors’ meeting, supervisors approved the TIF 4 to 1, with District 1 Supervisor Sheila Jones opposing.
The vote was also for 25 percent of the original proposal. Madison County is projected to receive approximately $33,000 more a year in property taxes once the project is completed and in service.
With the county pledging 25 percent of the $33,000, approximately $8,250 every year will go toward retiring the debt, amounting to a total of approximately $123,750 from the county at the end of the 15-year bond life.
However, the amount can fluctuate based on the actual increase in property tax revenue once the project is in service.
“The TIF plan identifies eight acres, which would be the TIF district where the city (of Ridgeland) and county would capture and identify the increase tax revenues to support the financing,” Gouras said. “The property represents an investment of approximately $20 million for the dealerships to locate there.”
The school district is anticipated to receive an extra $55,000 a year in tax revenue as well.
“(The project’s) estimated annual retail sales will approach $55 million a year, creating about $350,000 a year in sales tax rebate for the city of Ridgeland,” Gouras said.
The new dealerships will also be 165 miles away from the nearest like dealerships, leading to more economic activity that will include buying, trading and servicing those vehicles.
“The dealerships employ about 55 people today,” Gouras said. “They do not plan to vacate the existing dealership (in Jackson). They’ll have other used cars there and continue some operations… Some of that existing 55 to 60-member workforce will stay down there, and they’ll add some new employees (in Ridgeland).”
Once built, the dealerships will need to be in operation for a year before Ridgeland will issue the bond. Ridgeland officials approved a 50 percent TIF plan during a November board of aldermen meeting.
“This element about bringing 40 new jobs and $20 million in investment is very important, very positive,” Madison County Economic Development Authority (MCEDA) Executive Director Joey Deason said. “At the end of the day, it’s a good project. I think from a marketing, branding standpoint, it’s great to have that dealership located in our community.”
Deason said he also plans to bring guidelines to the next board of supervisors meeting about when future TIF projects would be advisable.
“This county does not need to TIF every project. We need to set some guidelines in regards to investment with regards to TIF bonds… I’ll have those at the next board meeting.”
